Is the auto sector about to make a new high? Know more here!

Breached the trend of lower top-lower bottom which indicates the end of correction that started from August 2022 and signals the commencement of fresh up move.

Nifty auto index is considered one of the major sectoral indices on NSE. The Index is primarily used to gauge the performance in the automobile sector in India.   

Like NIFTY 50 Index, the NIFTY Auto Index is also calculated using the free float market capitalization method. The index level reflects the total free float market value of all stocks in the index relative to a particular base market capitalization value.  

Currently Auto Index is trading in big consolidation range of 13,545 level on higher side and 11,917 level on lower side by making Equal highs and lower lows. Now it is trading around 12,425 level by rallying more than 4 per cent in last 3 trading sessions. Interestingly, the index has closed above the recent lower top (12,270 level) and breached the trend of lower top-lower bottom which indicates the end of correction that started from August 2022 and signals the commencement of fresh up move.   

As it closed again in its previous consolidation zone, it may experience some volatile moves but can expect further strength till the recent low of 11,901 level is protected by the bulls.  

Nifty Auto Index is re-balanced on a semi-annual basis with the cut-off dates being January 31 and July 31 of each year. What this means is that for a semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks' prior notice is given to the market from the date of the change.  

Index consists of 15 automobile stock companies that have different weightage in the index. Sharing the list of stocks with weightage in percentage.  

• Maruti Suzuki India Ltd – 19.4 per cent  
• Mahindra & Mahindra Ltd – 18.26 per cent  
• Tata Motors Ltd – 13.04 per cent  
• Bajaj Auto Ltd – 7.74 per cent  
• Eicher Motors ltd – 7.10 per cent  
• Hero Motocorp Ltd – 5.32 per cent  
• Tube Investments of India ltd - 4.67 per cent  
• TVS Motor Company Ltd – 4.41 per cent  
• Ashok Leyland Ltd – 3.53 per cent  
• Bharat forge Ltd – 3.47 per cent  
• MRF Ltd – 3.01 per cent  
• Bosch Ltd – 2.92 per cent   
• Balkrishna Industries Ltd – 2.72 per cent  
• Motherson Sumi – 2.4 per cent  
• Sona BLW Precision Forgings Ltd – 1.96 per cent